GBG sells off Spyder brand assets in South Korea
As it continues efforts to rightsize its portfolio and repay its debt, Hong Kong’s Global Brands Group (GBG) has announced the sale of its Spyder business in South Korea to Alpha Vista Investment Co. for a cash consideration of $40 million.
The transaction will involve the sale of all of the units of GBG’s wholly owned Korean subsidiary, Global Brands Group Korea Ltd., which designs, develops, markets and sells kids, men’s and women’s apparel, footwear, fashion accessories and lifestyle products under the Spyder brand in South Korea.
Spyder is owned by New York-based Authentic Brands Group, which licenses the brand to Global Brands Group Korea in the country. This license will now be acquired by a special purpose company owned by Alpha Vista, called Snow Vista Co., Ltd..
According to GBG, its Spyder Korea business contributed approximately $70.5 million to its total revenue during the nine-month period ended December 31, 2020, compared to the $472.9 million achieved through its other businesses.
In a filing submitted to the Hong Kong Stock Exchange, the company explained that, with the sale of the retail-oriented business, it hopes to rightsize its product and brand portfolio by reaffirming its focus on wholesale. The group is planning to use funds from the transaction to repay part of its existing bank debts.
Alpha Vista is a South Korean private equity investment firm, which is primarily focused on managing private equity funds. The sole representative director of the company is currently Songpil Hur, a professional investor with 17 years of experience, who holds 50% of the firm. The other 50% is held in aggregate by three other professional investors.
The transaction is subject to approval by GBG’s shareholders at a special general meeting, the date for which is yet to be established. Currently, the company expects to complete the transaction by May 27, 2021.
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